Why do I need a title search on a refinance?

Why do I need a title search on a refinance?

A refinance loan is actually a new loan; therefore, your lender will want to protect the investment. By requiring a new title search as a condition of refinance, your lender is looking to see if any liens or judgments have been recorded against you during the time in between.

Can a title search help you refinance a home?

For those looking to refinance their home loan, the title search can also provide information that may have been missed at closing, such as an old open mortgage, or if a lien was placed on the property mistakenly. What is Title Insurance?

When do you need a title search for closing?

When you purchase a home, the lender or attorney will request a title examiner to perform a title search for closing. A title search gives a history of the property including its previous owners and, depending on your state, the required search period could range between 40 and 70 years.

Do you need title search if you have lien on property?

Liens attach to the property, not the owners, so if you took ownership of a property with liens on it, they became your responsibility. No bank would allow that to happen. Now that you owned the home over the past few years and the property will not transfer ownership, you still need a title search.

What can a title search tell you about a property?

A title search can be used for many purposes, as it includes the names of the property owner (s), restrictions on the land, mortgage details, lease details and other relevant information associated with the property. What can you see on a title search? Conducting a title search to view the title information can reveal key details about a property.

Why is title insurance necessary during a refinance?

Why do I need title insurance when refinancing a mortgage loan? When you refinance your home your old loan is paid off and the lender’s title policy expires. Therefore when you refinance your lender will require a new loan policy on your new mortgage to protect their investment in the property.

What is a lender’s title policy?

A lender’s title policy protects the lender’s interest up to the amount of the loan. Owner’s coverage protects the buyer of the property’s interests if a title problem comes up. While lender’s policies typically contain an extended level of coverage, the owner’s coverage comes in standard or extended forms.

What is title company mortgage?

A mortgage title company is a company that handles the title search requirements of mortgage providers.

What is a mortgage title?

Mortgage Title. Title insurance is protection against loss arising from problems connected to the title to your property. Before you purchased your home, it may have gone through several ownership changes, and the land on which it stands went through many more.